Answer:
Mike has a comparative advantage in the production of computers.
Explanation:
Mike's opportunity cost of producing trucks instead of computers = 10 / 10 = 1.
Mike's opportunity cost of producing computers instead of trucks is 10 / 10 = 1.
Debra's opportunity cost of producing trucks instead of computers = 3 / 9 = 0.333.
Debra's opportunity cost of producing computers instead of trucks = 9 / 3 = 3.
Mike's opportunity cost of producing computers instead of trucks is 1, while Debra's is 3. Therefore, Mike has a comparative advantage in the production of computers.
Tradeoffs in cost involve examining the development of alternative designs, methods of production, and the required industrial base capability.
A tradeoff is a condition where a company must choose between the existing options in making a business decision. A company often faces a tradeoff situation.There are several considerations related to the cost decision making.
These considerations are the production design, method, and capability. Thus, the production method is the most appropriate answer.
Answer:
<u>Line of credit </u>
Explanation:
A line of credit refers to a mechanism of availing short term credit from banks whereby a borrower is provided with a preset limit till which funds can be availed anytime.
As the borrower repays the money borrowed, the line of credit gets restored to the previous level provided it is an open line of credit.
Line of credit specifies the maximum limit till which money can be borrowed. The rate of interest and repayment time period are decided by the lender which is usually a bank.
Borrower is usually supposed to pay interest upon the money actually borrowed and not the full limit of the line of credit.
